You could be actually increasing your risk by buying property jointly. What happens if the other person simply refuses to pay and walks out?

If you are sure about doing it together, go a written agreement drawn up covering things such as who pays what, what happens if one wants out and the other doesn’t etc.

You could use a unit trust with your units held individually or owns by a discretionary trust. This will had to the cost a bit. But may be worth it if you are going to do more than one property.

Terryw
Discover Home Loans
North Sydney
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They could always do a search to see if you owned property in your name, then check this to see if there is a mortgage. But this would be time consuming and costly, they would have to also search each state separately.

Terryw
Discover Home Loans
North Sydney
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I am unaware of any legislation covering this.

Stacking the contract up to a higher amount would result in a higher stamp duty amount payable. It would not help serviceability, but may help you get a subsequent valuation higher and this could result in less money needed in the deal.

Terryw
Discover Home Loans
North Sydney
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I think lease options would be the same as normal rentals. The landlord should have their own insurance which would cover this. You are just renting with the option to purchase at a later date.

Terryw
Discover Home Loans
North Sydney
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You can only get the profit if you sell. If you have equity and increase the loan, the extra portion could be paid into the home loan part, but this would not result in any tax savings. Tax deductibility is determined by use of the funds borrowed.

Terryw
Discover Home Loans
North Sydney
[email protected]

try http://www.gatherumgoss.com for Melb

Terryw
Discover Home Loans
North Sydney
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It is not lying on the contract. Stacking the contract may be a way to get a higher valuation after settlement. Since you are not getting a loan at settlement, there would be no lying to the lender needed. After settlement, the lender will not require a copy of the contract, but will just go on the valuation price of the property.

Terryw
Discover Home Loans
North Sydney
[email protected]

What is the alternative to living off equity?

It would probably have to be selling a property. If you were to sell a property you will lose all future capital growth of that property and will also have to pay various costs. Surely this is cooking the goose (and not drawing down the capital).

However, if you were able to keep the property and to use some of the equity, you would also be able to access future capital growth as well.

This stategy may not suit many people, but it can help other people stop working sooner than expected. On another forum, a person commented that they were able to ‘retire’ from work (before 30) by using this strategy. This freedom from having to attend work everyday enabled them to concentrate on property and they then made more money doing up property in the 1st year than they would have made working for that year.

Terryw
Discover Home Loans
North Sydney
[email protected]

Nope, The Devil did get over 80% LVR (about 84% I think) without LMI. I was once able to get someone 95% LVR without LMI with Bankwest too. Bankwest are one of my favourites as they have good service, are flexible and cheap (6.65% on the Lite Home loan). They also do loans for Hybrid Discretionary Trusts with the title in the company name and the loan in the individual’s name.

Terryw
Discover Home Loans
North Sydney
[email protected]